This morning I went to check on one of my short sale listings. The owners moved last week, so the home has been vacated. I always make it a point to check my vacant listings regularly, to be sure there are no problems, and to be sure the doors are locked and the lights are off.
When I walked into the kitchen, I noticed the blinds blowing in the breeze. Huh? How can that be, when the air conditioner wasn't currently running? Uh oh, there was a broken window.
A new pane of glass will need to be put in that window.
Often times we see short sales or foreclosures with windows that get boarded up to protect the home from the weather/rain. However, in many cases FHA or VA will not allow their buyer to purchase a home with broken or boarded up windows, because the short sale or foreclosure lenders are not favorable to doing repairs on these properties. So, often times the house will not pass an FHA or VA inspection.
NOTE: On every short sale and foreclosure, for a buyer, I always ask the lender to do the needed repairs. And often, they won't agree to it. However, I will say that on a couple occasions the lenders have done regular repairs and some necessary FHA repairs. One lender fixed some broken windows, one put a stove in and another gave a credit to the buyers for an A/C repair. We don't always know what they'll agree to do, until we ask.
So, the key here is to never assume they'll do nothing.
This article is authored by
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County Real Estate & Investing
I also buy, sell, rent, own and manage Investment Property.
that for you
Sandy,
Terrific suggestions. You never know until you ask.
Many Blessings,
Jim & Joan
Great point, Sandy. I think it applies to every transaction - if you don't ask, you don't know. The worst thing a seller - bank or otherwise - can tell the buy-side is no.
I ask for everything reasonable in all transactions with buyers offering on REOs.
John Crowe
www.crowehomesaustin.com
Hi Jim and John, Agreed, it does apply to every transaction. If you don't ask, you don't receive.
When I see selling as -is I don't ask for anything. I make sure my client is very aware of this.
Sandy - Good point. I had a deal-breaker roof inspection once, but BOFA wouldn't fix it. We tried:) They considered- investor decision.
Angelia, If the property is being offered as is, I ask that repairs be done. All they can do is say no. Don't ask and you don't receive.
Hi Wendy, Sometimes they'll agree to the repair and other times they won't. It depends on the lender and the repair. But, you just never know, do you?
Sandy,
I represented Buyers who were purchasing a foreclosure a few months ago and their home inspection showed the HVAC unit was faulty. The buyers could not get a loan without a functioning HVAC unit and the bank actually put money in escrow for the buyers to get a new HVAC unit.
Hi Christine and Jennifer, Great job to you for asking that money be escrowed for the A/C. Of course it didn't hurt, tht the lender was requiring it, either. It seems some of these banks are becoming a bit more favorable in some repair requests.
We all learn how to spell the word ASSUME very slowly. I had an agent use that word with me in trying to get a home to close as he ass-u-me-d that the movers would show up....he assumed the cleaning lady would show up, and on and on. Closing moved 2 days and we are done. Nobody checked on the movers. Nobody checked on the cleaning lady. Here we are two days latter after all was assumed.
Sandy - I had never even considered asking the lender for any repairs. This is a good idea, and makes a lot of sense. If the current condition of the home does not allow the lender to finance, these fixes must be done before anyone would be able to buy the home, unless it was a cash buyer. I will keep this in mind for all future transactions.
Sandy - I think the smoothest short-sales and foreclosure sales I've dealt with had the buyer using the same lender that either owned the property, or is the current mortgage holder on the property. And, in the present environment where many properties are being sold "as is" and often without disclosures, I HIGHLY RECOMMEND a Home Inspection, termite inspection, and often a roof inspection. The seller won't make repairs generally - but the buyer still needs an assessment of property condition.
Sandy,
Sounds like you are taking care of things and it never hurts to ask!
Ann
Tim, Oh, we have to be so careful with that word, ASSUME. Great point!
Troy, Great, it never hurts to ask. All they can do is say no.
Hi Myrl, Great pointers- using the same lender that is handling the short sale, and getting those inspections are essential. Often times the sellers won't make the repairs, but here we have seen some that have been pretty receptive to helping the buyers get in.
Hi Ann, I agree, that it never hurts to ask. I have had the door slammed in my face many times before.
Great advice. I guess the worst that could happen is that they say "No". Thanks.
Irene, I think that you're right...all they can do is say no. I've heard that word many times, and I am sure I will hear it many more times, too.